Performance Report Based on Budgeted and Actual Levels of Production

Bowling Company budgeted the following amounts:

Variable costs of production:Direct materials3 pounds @ $0.60 per poundDirect labor0.5 hr. @ $16.00 per hourVOH0.5 hr. @ $2.20FOH:Materials handling$6,200Depreciation$2,600

At the end of the year, Bowling had the following actual costs for production of 3,800 units:

Direct materials$6,800Direct labor30,500VOH4,200FOH:Materials handling6,300Depreciation$2,600

Required:

1. Calculate the budgeted amounts for each cost category listed above for the 4,000 budgeted units.

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2. Prepare a performance report using a budget based on expected production of 4,000 units. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number and if there is no entries enter "0" then select for "Not applicable".